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Import Safeguards: Protectionist Measures Or A Liberalization Strategy?

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  • Grant, Jason H.
  • Meilke, Karl D.

Abstract

The Doha Trade Round maintains that a considerable effort will be given to take into account better the particular needs of developing nations. Many low-income countries argue that the flexibility to invoke a special safeguard mechanism when faced with volatile commodity markets is a necessary condition for further market access reform. The implications of a safeguard for developing agriculture as a trade-off for lowering their tariff rates, is an important empirical question. Two stochastic simulation experiments are developed using wheat as a case study to estimate the marginal effects of a safeguard in terms of domestic market stability and on developed exporting nations. The results reveal that a safeguard for developing agriculture is minimally trade distorting and in general, costs less than one percent of total world welfare that would be realized if low-income countries were not granted a safeguard. Furthermore, safeguards are an attractive policy tool because they are transparent, easy to use and are an automatic mechanism.

Suggested Citation

  • Grant, Jason H. & Meilke, Karl D., 2004. "Import Safeguards: Protectionist Measures Or A Liberalization Strategy?," 2004 Annual meeting, August 1-4, Denver, CO 20236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20236
    DOI: 10.22004/ag.econ.20236
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    References listed on IDEAS

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    1. Somwaru, Agapi & Skully, David, 2003. "Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis," Conference papers 331147, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. A. C. Zwart & K. D. Meilke, 1979. "The Influence of Domestic Pricing Policies and Buffer Stocks on Price Stability in the World Wheat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 434-447.
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    Cited by:

    1. Rude, James & Meilke, Karl D., 2004. "Developing Policy Relevant Agrifood Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-14, August.
    2. Grant, Jason H. & Meilke, Karl D., 2005. "The WTO Special Safeguard Mechanism: A Case Study of Wheat," Working Papers 24158, Canadian Agricultural Trade Policy Research Network.

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